Ofcom

Ofcom today published its discussion document on the challenges facing the UK’s telecommunications sector over the next decade, marking the completion of the first phase of the Digital Communications Review that it kicked off in March. The key aim of the review is to ensure that the UK’s citizens and businesses are well served by high-quality, widely available telecoms services.

Ofcom yesterday launched an action plan for improving the broadband services that are available to the UK’s small and medium sized enterprises (SMEs). Whilst they found that the vast majority of SMEs are satisfied with the communications and are well catered for, they did discover a significant minority who had less favourable experiences. Ofcom highlighted four issues that they feel need more attention; the availability of superfast broadband, a concentrated retail market structure, concerns around quality of service, and SMEs struggling to navigate the market.

Sharon White delivered today her first major speech as Ofcom’s Chief Executive at a Which? Conference. She stressed that Ofcom will continue to carry out its role as a light touch regulator, encouraging competition and investment, but with an increased consumer focus. As part of her speech, Sharon White highlighted some elements of Ofcom’s work programme, including the improvement of the process for consumers to switch broadband and landline providers, the upcoming Digital Communications Review, and confirming the government’s commitment to deliver the Universal Service Obligation of 5Mbit/s.

According to Ofcom’s “Adults’ Media Use and Attitudes Report” published yesterday, UK adults (aged 16+) spend on average 20.5 hours per week online. This is twice as much time compared to 10 years ago (9.9hours).

Ofcom announced yesterday the launch of its strategic review of digital communications, a decade after the first review was completed. The regulator will be considering whether current competition and investment infrastructure in the digital communication sector are fit for consumers and businesses’ current and future needs.

The ninth annual report published on 28 January explores the consumers’ experience of the use telecoms, the internet (predominantly fixed broadband), digital broadcasting and postal services in 2014. It is accompanied by a Consumer Experience Policy Evaluation which assesses the impact of Ofcom’s policy work and activities against the findings of the research.

Much of the focus on improving access to the internet has been understandably focused on rural areas. However, research undertaken for Ofcom by Analysys Mason not only shows that slow broadband and Next Generation Access (NGA) availability affect a significant minority of households in urban areas – but that these households tend to be those on the lowest incomes.

The report focuses its attention on areas where the committee believed BT and the Department of Culture, Media and Sport could have acted in a way which brought better value for money for the tax payers.

The DCMS strategy paper indicated that legislation would be passed to give Ofcom a duty to ensure a consistent and effective experience for consumer switching, particularly in regard to bundles, and this latest release lays out a consultation and statement on the processes for switching fixed voice and broadband providers on the Openreach copper network (which includes FTTC).

In 50 rounds of bidding, a total of 250MHz of spectrum was auctioned in the 800MHz and 2.6GHz bands. It is thought that the combination of the two bands will allow networks to deal with concentrated demand in urban areas as well as provide widespread network coverage. (more…)